Vince Cable, Liberal Democrat Chancellor, speech to the Liberal Democrat Party Conference 2009

The video discusses the financial state of the country, highlighting that while it is not bankrupt, there are significant issues with public finances. The government is spending beyond its means, with tax receipts at a historic low. The budget deficit is not just a result of recession but also structural problems. Spending cuts could harm public services and investments, particularly in social housing. The speaker suggests setting priorities and deciding government roles as an alternative approach.

What is one of the main reasons for the poor state of public finances?

• The public is not paying enough taxes.

• The government is living beyond its means.

• The financial collapse had no impact.

• The government is bankrupt.

What is a structural problem contributing to the budget deficit?

• Decreased spending on infrastructure.

• Increased public spending on education.

• Temporary windfalls treated as permanent.

• Permanent tax cuts.

What could be a consequence of cutting public spending in a 'slash and burn' manner?

• Improved public services.

• Higher wages for lower-paid workers.

• Increased tax revenue.

• Damage to local and national services.

What area of public investment is particularly at risk due to spending cuts?

• Public transportation.

• Social housing.

• Military defense.

• Healthcare.

What is suggested as an alternative approach to handling government spending?

• Borrowing more money.

• Eliminating all public services.

• Setting priorities for government actions.

• Increasing taxes across the board.